Intermediate Accounting, 11th Edition: Donald E. Kieso ; Jerry J. Weygandt ; Terry D. Warfield: 9780471072089: Book: Business & Economics: eCampus.com

This bestseller has powered the careers of countless professionals. This update to the 11^th edition builds on the book's reputation for comprehensiveness, accuracy, and currency, incorporating all the recent changes to the accounting literature. It integrates numerous examples from real corporations throughout the chapters to help readers understand the application of accounting principles and techniques in practice. They’ll also find problems that are modeled on the AICPA 'Simulations' — a new question format designed for the computerized uniform CPA Exam. These problems prepare readers for the exam, testing their ability to read, digest, research and respond to both a numeric problem and a short answer essay

CHAPTER 1 Financial Accounting and Accounting Standards

Learning Objectives,

(1)

Vignette: The Size of the New York City Phone Book ...,

(1)

Preview of Chapter 1

FINANCIAL STATEMENTS AND FINANCIAL REPORTING,

(4)

Accounting and Capital Allocation,

(1)

The Challenges Facing Financial Accounting,

(1)

Objectives of Financial Reporting,

(1)

The Need to Develop Standards,

(1)

PARTIES INVOLVED IN STANDARDS SETTING,

(6)

Securities and Exchange Commission (SEC),

(1)

merican Institute of Certified Public Accountants, (AICPA),

(1)

Financial Accounting Standards Board (FASB),

(3)

Governmental Accounting Standards Board (GASB),

(1)

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES,

(2)

ISSUES IN FINANCIAL REPORTING,

(14)

Standards Setting in a Political Environment,

(1)

The Expectations Gap,

(1)

International Accounting Standards,

(1)

Ethics in the Environment of Financial Accounting,

(1)

Conclusion,

(1)

Summary of Learning Objectives, Key Terms,

(1)

Questions,

(1)

Conceptual Cases,

(4)

Using Your Judgment: Financial Reporting Problem,

(1)

International Reporting Case,

(1)

Professional Simulation,

(1)

CHAPTER 2 Conceptual Framework Underlying Financial Accounting

(34)

Learning Objectives,

(1)

Vignette: Show Me the Earnings!,

(1)

Preview of Chapter 2

CONCEPTUAL FRAMEWORK,

(2)

Need for Conceptual Framework,

(1)

Development of Conceptual Framework,

(1)

FIRST LEVEL: BASIC OBJECTIVES,

(1)

SECOND LEVEL FUNDAMENTAL CONCEPTS,

(4)

Qualitative Characteristics of Accounting Information,

(3)

Basic Elements,

(1)

THIRD LEVEL: RECOGNITION AND MEASUREMENT CONCEPTS,

(27)

Basic Assumptions,

(2)

Basic Principles of Accounting,

(5)

Constraints,

(3)

Summary of the Structure,

(1)

Summary of Learning Objectives, Key Terms,

(1)

Questions,

(1)

Brief Exercises,

(2)

Exercises,

(3)

Conceptual Cases,

(4)

Using Your Judgment: Financial Reporting Problem,

(1)

Financial Statement Analysis Case,

(1)

Comparative Analysis Case,

(1)

Research Cases,

(1)

International Reporting Case,

(1)

Professional Simulation,

(1)

CHAPTER 3 The Accounting Information System

(62)

Learning Objectives,

(1)

Vignette: Needed: A Reliable Information System,

(1)

Preview of Chapter 3

ACCOUNTING INFORMATION SYSTEM,

(6)

Basic Terminology,

(1)

Debits and Credits,

(1)

Basic Equation,

(2)

Financial Statements and Ownership Structure,

(2)

THE ACCOUNTING CYCLE,

(18)

Identifying and Recording Transactions and Other Events,

(1)

Journalizing,

(1)

Posting,

(1)

Trial Balance,

(1)

Adjusting Entries,

(10)

Adjusted Trial Balance,

(1)

Closing,

(2)

Post-Closing Trial Balance,

(1)

Reversing Entries,

(1)

The Accounting Cycle Summarized,

(1)

USING A WORK SHEET,

(6)

Adjustments Entered on the Work Sheet,

(2)

Work Sheet Columns,

(1)

Preparing Financial Statements from a Work Sheet,

(2)

Closing Entries,

(1)

Summary of Learning Objectives, Key Terms,

(1)

APPENDIX 3A Cash-Basis Accounting versus Accrual-Basic Accounting,

(5)

DIFFERENCES BETWEEN CASH AND ACCRUAL BASIS,

(2)

CONVERSION FROM CASH BASIS TO ACCRUAL BASIS,

(2)

Service Revenue Computation,

(1)

Operating Expense Computation,

(1)

THEORETICAL WEAKNESSES OF THE CASH BASIS,

(1)

Summary of Learning Objective for Appendix 3A, Key Terms,

(1)

APPENDIX 3B Using Reversing Entries,

(72)

ILLUSTRATION OF REVERSING ENTRIES-ACCRUALS,

(1)

ILLUSTRATION OF REVERSING ENTRIES-PREPAYMENTS,

(1)

SUMMARY OF REVERSING ENTRIES,

100

(1)

Summary of Learning Objective for Appendix 3B,

100

(1)

Questions,

100

(1)

Brief Exercises,

100

(3)

Exercises,

103

(8)

Problems,

111

(7)

Using Your Judgment: Financial Reporting Problem,

118

(1)

Financial Statement Analysis Case,

118

(1)

Comparative Analysis Case,

119

(1)

Research Case,

119

(1)

Professional Simulations,

120

(3)

CHAPTER 4 Income Statement and Related Information

123

(46)

Learning Objectives,

123

(1)

Vignette: Which Income Number?,

123

(1)

Preview of Chapter 4

INCOME STATEMENT,

124

(3)

Usefulness of the Income Statement,

124

(1)

Limitations of the Income Statement,

125

(1)

Quality of Earnings,

125

(2)

FORMAT OF THE INCOME STATEMENT,

127

(7)

Elements of the Income Statement,

127

(1)

Single-Step Income Statements,

128

(1)

Multiple-Step Income Statements,

129

(1)

Condensed Income Statements,

130

(4)

REPORTING IRREGULAR ITEM Discontinued Operations,

134

(7)

Extraordinary Items,

135

(2)

Unusual Gains and Losses,

137

(2)

Changes in Accounting Principle,

139

(1)

Changes in Estimates,

140

(1)

Summary of Irregular Items,

140

(1)

SPECIAL REPORTING ISSUES,

141

(29)

Intraperiod Tax Allocation,

141

(2)

Earnings per Share,

143

(1)

Retained Earnings Statement,

144

(1)

Comprehensive Income,

145

(3)

Summary of Learning Objectives, Key Terms,

148

(1)

Questions,

149

(2)

Brief Exercises,

151

(1)

Exercises,

152

(4)

Problems,

156

(3)

Conceptual Cases,

159

(4)

Using Your Judgment: Financial Reporting Problem,

163

(1)

Financial Statement Analysis Cases,

164

(1)

Comparative Analysis Case,

165

(1)

Research Cases,

165

(1)

International Reporting Case,

166

(1)

Professional Simulation,

167

(2)

CHAPTER 5 Balance Sheet and Statement of Cash Flows

169

(82)

Learning Objectives,

169

(1)

Vignette: "There Ought to Be a Law,"

169

(1)

Preview of Chapter 5

SECTION 1 BALANCE SHEET,

170

(20)

USEFULNESS OF THE BALANCE SHEET,

170

(1)

LIMITATIONS OF THE BALANCE SHEET,

171

(1)

CLASSIFICATION IN THE BALANCE SHEET,

172

(1)

Current Assets,

173

(4)

Non-Current Assets,

177

(2)

Liabilities,

179

(3)

Owners' Equity,

182

(1)

Balance Sheet Format,

182

(3)

ADDITIONAL INFORMATION RPM EE Contingencies,

185

(1)

Accounting Policies,

185

(1)

Contractual Situations,

186

(1)

Fair Values,

186

(1)

Ant OF DISCLOS

Parenthetical Explanations,

187

(1)

Notes,

187

(1)

Cross References and Contra Items,

188

(1)

Supporting Schedules,

189

(1)

Terminology,

189

(1)

SECTION 2 STATEMENT OF CASH ROWS.

190

(10)

PURPOSE OF THE STATEMENT OF CASH CONTENT AND FORMAT OF THE STATEMENT OF CASH FLOWS,

191

(2)

PREPARATION OF THE STATEMENT OF CASH FLOWS,

193

(2)

USEFULNESS OF THE STATEMENT OF CASH FLOWS,

195

(1)

Financial Liquidity,

196

(1)

Financial Flexibility,

197

(1)

Free Cash Flow,

197

(1)

Summary of Learning Objectives, Key Terms,

198

(2)

APPENDIX 5A Ratio Analysis-A Reference,

200

(2)

USING RATIOS TO ANALYZE FINANCIAL PERFORMANCE,

200

(2)

Summary of Learning Objectives for Appendix 5A, Key Terms,

201

(1)

APPENDIX 5B Specimen Financial Statement: 3M Company,

202

(27)

Questions,

229

(1)

Brief Exercises,

230

(1)

Exercises,

231

(8)

Problems,

239

(4)

Conceptual Cases,

243

(3)

Using Your Judgment: Financial Reporting Problem,

246

(1)

Financial Statement Analysis Cases,

247

(1)

Comparative Analysis Case,

248

(1)

Research Case,

248

(1)

International Reporting Case,

249

(1)

Professional Simulation,

250

(1)

CHAPTER 6 Accounting and the Time Value of Money

251

(62)

Learning Objectives,

251

(1)

Vignette: The Magic of Interest,

251

(1)

Preview of Chapter 6

BASIC TIME VALUE CONCEPTS,

252

(7)

Applications of Time Value

Concepts,

252

(1)

The Nature of Interest,

253

(1)

Simple Interest,

254

(1)

Compound Interest,

254

(4)

Fundamental Variables,

258

(1)

SINGLE-SUM PROBLEMS,

259

(5)

Future Value of a Single Sum,

259

(2)

Present Value of a Single Sum,

261

(2)

Solving for Other Unknowns in Single-Sum Problems,

263

(1)

ANNUITIES,

264

(11)

Future Value of an Ordinary Annuity,

265

(2)

Future Value of an Annuity Due,

267

(1)

Illustrations of Future Value of Annuity

Problems,

268

(2)

Present Value of an Ordinary Annuity,

270

(2)

Present Value of an Annuity Due,

272

(1)

Illustrations of Present Value of Annuity Problems,

273

(2)

MORE COMPLEX SITUATIONS,

275

(4)

Deferred Annuities,

275

(2)

Valuation of Long-Term Bonds,

277

(1)

Effective Interest Method of Amortization of Bond Discount or Premium,

278

(1)

PRESENT VALUE MEASUREMENT,

279

(3)

Choosing an Appropriate Interest Rate,

280

(1)

Expected Cash Flow Illustration,

281

(1)

Summary of Learning Objectives, Key Terms,

282

(2)

APPENDIX 6A Using Financial Calculators,

284

(30)

FUTURE VALUE OF A SINGLE SUM,

284

(1)

Plus and Minus,

285

(1)

Compounding Periods,

285

(1)

Rounding,

285

(1)

PRESENT VALUE OF A SINGLE SUM,

285

(1)

FUTURE VALUE OF AN ORDINARY ANNUITY,

285

(1)

FUTURE VALUE OF AN ANNUITY DUE,

286

(1)

PRESENT VALUE OF AN ORDINARY ANNUITY,

286

(1)

USEFUL FEATURES OF THE FINANCIAL CALCULATOR,

287

(27)

Auto Loan,

287

(1)

Mortgage Loan Amount,

287

(1)

Individual Retirement Account (IRA),

288

(1)

Summary of Learning Objective for Appendix 6A,

288

(1)

Questions,

288

(1)

Brief Exercises,

289

(1)

Exercises,

290

(4)

Problems,

294

(5)

Using Your Judgment: Financial Reporting Problem,

299

(1)

Financial Statement Analysis Case,

300

(1)

Comparative Analysis Case,

300

(1)

Research Cases,

300

(1)

Professional Simulation,

301

(1)

TIME VALUE OF MONEY TABLES,

302

(11)

CHAPTER 7 Cash and Receivables

313

(54)

Learning Objectives,

313

(1)

Vignette: Ugly Duckling or Swan?,

313

(1)

Preview of Chapter 7

SECTION 1 CASH,

314

(4)

WHAT IS CASH?,

314

(1)

MANAGEMENT AND CONTROL OF CASH,

315

(1)

REPORTING CASH,

316

(1)

Restricted Cash,

316

(1)

Bank Overdrafts,

317

(1)

Cash Equivalents,

317

(1)

SUMMARY OF CASH-RELATED ITEMS,

318

(1)

SECTION 2 RECEIVABLES,

318

(22)

RECOGNITION OF ACCOUNTS RECEIVABLE,

320

(1)

Trade Discounts,

320

(1)

Cash Discounts (Sales Discounts),

320

(1)

Nonrecognition of Interest Element,

321

(1)

VALUATION OF ACCOUNTS RECEIVABLE,

322

(1)

Uncollectible Accounts Receivable,

322

(4)

RECOGNITION OF NOTES RECEIVABLE,

326

(1)

Note Issued at Face Value,

327

(1)

Note Not Issued at Face Value,

328

(3)

Choice of Interest Rate,

331

(1)

VALUATION OF NOTES RECEIVABLE,

331

(1)

DISPOSITION OF ACCOUNTS AND NOTES RECEIVABLE,

332

(1)

Secured Borrowing,

333

(1)

Sales of Receivables,

334

(2)

Secured Borrowing versus Sale,

336

(1)

PRESENTATION AND ANALYSIS,

337

(1)

Presentation of Receivables,

337

(1)

Analysis of Receivables,

338

(1)

Summary of Learning Objectives, Key Terms,

339

(1)

APPENDIX 7A Cash Controls,

340

(82)

USING BANK ACCOUNTS,

340

(1)

THE IMPREST PETTY CASH SYSTEM,

341

(1)

PHYSICAL PROTECTION OF CASH BALANCES,

342

(1)

RECONCILIATION OF BANK BALANCES,

342

(3)

Summary of Learning Objective for Appendix 7A, Key Terms,

345

(1)

Questions,

346

(1)

Brief Exercises,

347

(1)

Exercises,

348

(6)

Problems,

354

(6)

Conceptual Cases,

360

(4)

Using Your Judgment: Financial Reporting Problem,

364

(1)

Financial Statement Analysis Case,

364

(1)

Comparative Analysis Case,

365

(1)

Research Cases,

365

(1)

Professional Simulation,

366

(1)

CHAPTER 8 Valuation of Inventories: A Cost Basis Approach

367

(54)

Learning Objectives,

367

(1)

Vignette: Inventories in the Crystal Ball,

367

(1)

Preview of Chapter 8

INVENTORY CLASSIFICATION AND CONTROL,

368

(4)

Classification,

368

(2)

Control,

370

(2)

BASIC ISSUES IN INVENTORY VALUATION,

372

(1)

PHYSICAL GOODS INCLUDED IN INVENTORY,

372

(5)

Goods in Transit,

373

(1)

Consigned Goods,

373

(1)

Special Sale Agreements,

374

(1)

Effect of Inventory Errors,

375

(2)

COSTS INCLUDED IN INVENTORY,

377

(2)

Product Costs,

377

(1)

Period Costs,

377

(1)

Treatment of Purchase Discounts,

378

(1)

WHAT COST FLOW ASSUMPTION SHOULD BE ADOPTED?,

379

(5)

Specific Identification,

380

(1)

Average Cost,

381

(1)

First-In, First-Out (FIFO),

382

(1)

Last-In, First-Out (LIFO),

383

(1)

SPECIAL ISSUES RELATED TO LIFO,

384

(10)

LIFO Reserve,

384

(1)

LIFO Liquidation,

385

(1)

Dollar-Value LIFO,

386

(5)

Comparison of LIFO Approaches,

391

(1)

Major Advantages of LIFO,

391

(1)

Major Disadvantages of LIFO,

392

(2)

BASIS FOR SELECTION OF INVENTORY METHOD,

394

(28)

Inventory Valuation Methods-Summary Analysis,

396

(1)

Summary of Learning Objectives, Key Terms,

397

(1)

Questions,

398

(1)

Brief Exercises,

399

(1)

Exercises,

400

(8)

Problems,

408

(5)

Conceptual Cases,

413

(3)

Using Your Judgment: Financial Statement Analysis Cases,

416

(2)

Research Cases,

418

(1)

Professional Simulation,

419

(2)

CHAPTER 9 Inventories: Additional Valuation Issues

421

(48)

Learning Objectives,

421

(1)

Vignette: What Do Inventory Changes Tell Us?,

421

(1)

Preview of Chapter 9

LOWER OF COST OR MARKET,

422

(7)

Lower of Cost or Market-Ceiling and Floor,

423

(1)

How Lower of Cost or Market Works,

424

(1)

Methods of Applying Lower of Cost or Market,

425

(1)

Recording "Market" Instead of Cost,

426

(2)

Evaluation of the Lower of Cost or Market Rule,

428

(1)

VALUATION BASES,

429

(3)

Valuation at Net Realizable Value,

429

(1)

Valuation Using Relative Sales Value,

429

(1)

Purchase Commitments-A Special Problem,

430

(2)

THE GROSS PROFIT METHOD OF ESTIMATING INVENTORY,

432

(3)

Computation of Gross Profit Percentage,

433

(2)

Evaluation of Gross Profit Method,

435

(1)

RETAIL INVENTORY METHOD,

435

(5)

Retail Method Terminology,

436

(1)

Retail Inventory Method with Markups and Markdowns-Conventional Method,

437

(2)

Special Items Relating to Retail Method,

439

(1)

Evaluation of Retail Inventory Method,

440

(1)

PRESENTATION AND ANALYSIS,

440

(4)

Presentation of Inventories,

440

(2)

Analysis of Inventories,

442

(1)

Summary of Learning Objectives, Key Terms,

443

(1)

APPENDIX 9A LIFO Retail Methods,

444

(76)

LIFO RETAIL METHODS,

444

(3)

Stable Prices-LIFO Retail Method Key Terms,

444

(1)

Fluctuating Prices-Dollar-Value LIFO Retail Method,

445

(1)

Subsequent Adjustments Under Dollar-Value LIFO Retail,

446

(1)

CHANGING FROM CONVENTIONAL RETAIL TO LIFO,

447

(2)

Questions,

449

(1)

Brief Exercises,

450

(1)

Exercises,

451

(6)

Problems,

457

(6)

Conceptual Cases,

463

(2)

Using Your Judgment: Financial Reporting Problem,

465

(1)

Financial Statement Analysis Cases,

465

(2)

Comparative Analysis Case,

467

(1)

Research Cases,

467

(1)

Professional Simulation,

468

(1)

CHAPTER 10 Acquisition and Disposition of Property, Plant, and Equipment

469

(50)

Learning Objectives,

469

(1)

Vignette: Where Have All the Assets Gone?,

469

(2)

Preview of Chapter 10

ACQUISITION OF PROPERTY, PLANT, AND EQUIPMENT,

471

(8)

Cost of Land,

471

(1)

Cost of Buildings,

472

(1)

Cost of Equipment,

472

(1)

Self-Constructed Assets,

472

(1)

Interest Costs During Construction,

473

(5)

Observations,

478

(1)

VALUATION,

479

(10)

Cash Discounts,

479

(1)

Deferred Payment Contracts,

479

(1)

Lump Sum Purchases,

480

(1)

Issuance of Stock,

481

(1)

Exchanges of Nonmonetary Assets,

482

(5)

Accounting for Contributions,

487

(1)

Other Asset Valuation Methods,

488

(1)

COSTS SUBSEQUENT TO ACQUISITION,

489

(4)

Additions,

490

(1)

Improvements and Replacements,

490

(1)

Rearrangement and Reinstallation,

491

(1)

Repairs,

491

(1)

Summary of Costs Subsequent to Acquisition,

492

(1)

DISPOSITIONS OF PLANT ASSETS,

493

(27)

Sale of Plant Assets,

493

(1)

Involuntary Conversion,

494

(1)

Miscellaneous Problems,

494

(1)

Summary of Learning Objectives, Key Terms,

495

(1)

Questions,

496

(1)

Brief Exercises,

497

(1)

Exercises,

498

(9)

Problems,

507

(6)

Conceptual Cases,

513

(2)

Using Your Judgment: Financial Statement Analysis Case,

515

(1)

Research Case,

516

(1)

Professional Simulation,

517

(2)

CHAPTER 11 Depreciation, Impairments, and Depletion

519

(50)

Learning Objectives,

519

(1)

Vignette: Do They Matter?,

519

(1)

Preview of Chapter 11

DEPRECIATION-A METHOD OF COST ALLOCATION,

520

(12)

Factors Involved in the Depreciation Process,

521

(2)

Methods of Depreciation,

523

(3)

Special Depreciation Methods,

526

(2)

Special Depreciation Issues,

528

(4)

IMPAIRMENTS,

532

(4)

Recognizing Impairments,

533

(1)

Measuring Impairments,

533

(1)

Restoration of Impairment Loss,

534

(1)

Assets to Be Disposed Of,

535

(1)

DEPLETION,

536

(5)

Establishing a Depletion Base,

536

(1)

Write-Off of Resource Cost,

537

(1)

Continuing Controversy,

538

(2)

Special Problems in Depletion Accounting,

540

(1)

PRESENTATION AND ANALYSIS,

541

(3)

Presentation of Property, Plant, Equipment, and Natural Resources,

541

(1)

Analysis of Property, Plant, Equipment, and Natural Resources,

542

(2)

Summary of Learning Objectives, Key Terms,

544

(1)

APPENDIX 11A Income Tax Depreciation,

545

(25)

MODIFIED ACCELERATED COST RECOVERY SYSTEM,

545

(25)

Tax Lives (Recovery Periods),

545

(1)

Tax Depreciation Methods,

546

(1)

Illustration-MACRS System,

546

(2)

Optional Straight-Line Method,

548

(1)

Tax versus Book Depreciation,

548

(1)

Summary of Learning Objective for Appendix 11A, Key Terms,

548

(1)

Questions,

548

(2)

Brief Exercises,

550

(1)

Exercises,

550

(6)

Problems,

556

(6)

Conceptual Cases,

562

(2)

Using Your Judgment: Financial Reporting Problem,

564

(1)

Financial Statement Analysis Case,

564

(1)

Comparative Analysis Case,

565

(1)

Research Case,

566

(1)

International Reporting Case,

566

(1)

Professional Simulation,

567

(2)

CHAPTER 12 Intangible Assets

569

(46)

Learning Objectives,

569

(1)

Vignette: Untouchable,

569

(1)

Preview of Chapter 12

INTANGIBLE ASSET ISSUES,

570

(3)

Characteristics,

570

(1)

Valuation,

571

(1)

Amortization of Intangibles,

571

(2)

TYPES OF INTANGIBLE ASSETS,

573

(8)

Marketing-Related Intangible Assets,

573

(1)

Customer-Related Intangible Assets,

574

(1)

Artistic-Related Intangible Assets,

575

(1)

Contract-Related Intangible Assets,

575

(1)

Technology-Related Intangible Assets,

576

(2)

Goodwill,

578

(3)

IMPAIRMENT OF INTANGIBLE ASSETS,

581

(3)

Impairment of Limited-Life Intangibles,

581

(1)

Impairment of Indefinite-Life Intangibles Other Than Goodwill,

582

(1)

Impairment of Goodwill,

583

(1)

RESEARCH AND DEVELOPMENT COSTS,

584

(6)

Identifying R & D Activities,

585

(1)

Accounting for R & D Activities,

585

(2)

Other Costs Similar to R & D Costs,

587

(2)

Conceptual Questions,

589

(1)

PRESENTATION OF INTANGIBLES AND RELATED ITEMS,

590

(2)

Presentation of Intangible Assets,

590

(1)

Presentation of Research and Development Costs,